Are unpaid internships worth it for students starting their careers? Let’s break it down. Work experience, networking, mentoring… internships, what’s not to like? Internships are an amazing opportunity for students to gain “real-life” workplace experience with mentors. And, on the flipside, employers can mutually benefit from supporting and growing new talent for the future benefit of their organisation.
Does that mutually beneficial scale tip when it comes to unpaid internships? Here’s what you need to know before entering into an unpaid internship agreement.
The fundamentals: An unpaid internship is a volunteer position and normal employment laws do not apply. There are specific guidelines when it comes to unpaid internships, Employment New Zealand is an excellent resource for understanding what’s fair and legal in this space.
An unpaid internship should meet the following criteria:
Clear volunteer status. Clear volunteer status. Interns should be informed in writing that they’re volunteering and won’t receive payment.
No significant benefit to the employer. No significant benefit to the employer. The intern’s work should not replace paid employee tasks or generate profit for the business.
Primarily focused on learning. Primarily focused on learning. Internships should be structured around skill development, shadowing, and training rather than routine company tasks.
Non-integral tasks only. Non-integral tasks only. Tasks should be educational, rather than critical to the company’s operations.
Interns who are performing regular work tasks can be considered an employee and therefore entitled to wages and employment protections. This underscores the importance of ensuring that unpaid internships meet specific criteria to avoid any confusion about employment status.
The Citizens Advice Bureau recommends that unpaid internships be short-term and focused on growth, which helps protect students from exploitation.
According to the Victoria University of Wellington Careers Service, these boundaries are essential for protecting students. They highlight that if an internship involves ongoing responsibilities, or if it becomes more about the company’s needs than the intern’s learning, it may need to be restructured or compensated. They state,
Tips for employers: Structuring ethical unpaid internships Ensure it’s focused on learning, not labour. Ensure it’s focused on learning, not labour. Internships should focus on skill-building. If interns perform tasks that directly benefit the company, like completing projects or handling admin work, the role may need to be paid.
Make a clear agreement. Make a clear agreement. Outline the intern’s role, expectations, and the fact that it’s an unpaid and voluntary. Transparency makes for a better experience on both sides.
Set up mentorship and guidance. Set up mentorship and guidance. A good internship offers more than just tasks, it provides guidance. Regular check-ins, feedback, and structured learning activities can make all the difference.
Expenses. Expenses. Whilst no payment should be expected in a volunteer agreement, the following can be considered.
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paying back expenses the volunteer paid for as part of the volunteer work
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a koha or thank-you gift
Consider a paid internship. Consider a paid internship. If the intern’s contributions start to benefit your business, think about transitioning the role to a paid internship. It’s fair, and it keeps you in line with employment laws. According to Citizens Advice Bureau, if an intern is regularly assigned work that an employee would otherwise do, they could be entitled to minimum wage.
Tips for students considering an unpaid internship: Look for genuine learning opportunities. Look for genuine learning opportunities. If you’re giving your time for free, make sure you’re gaining skills and experience you wouldn’t easily get elsewhere. Ask your potential employer about the specific skills or projects you’ll be working on.
Understand your rights. Understand your rights. Know the difference between being a volunteer and an employee. If your role starts to feel more like an employee’s job, where you’re responsible for ongoing tasks, it’s time to have a conversation about compensation.
Don’t be afraid to ask questions. Don’t be afraid to ask questions. Ask about what you’ll be doing day-to-day, who you’ll work with, and what you can expect to learn. It’s your right to have a clear idea of what you’re signing up for.
Unpaid internships can provide valuable learning experiences if they’re structured to prioritise education and skill-building. It could be beneficial to get a foot in the door at a desired organisation, keep busy and get some practical work experience. This can be especially important when the employment environment is difficult for applicants.
For students considering unpaid opportunities, it's essential to weigh the trade-offs. An unpaid role could offer invaluable experience, connections, and exposure to accelerate career growth. If you're in a position to forgo income temporarily and the experience aligns with your longer-term goals, accepting and unpaid internship may ultimately outweigh the temporary financial sacrifice.
Internships, whether paid or unpaid, should offer students meaningful experiences and skills to advance their future careers, while giving employers the opportunity to inspire and support the next generation.